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Based on market research, a film production company obtains the following information about the demand and production costs of its new DVD:
Demand: P = 1,000 -10Q
Total Revenue: TR =1,000Q 10Q^2
Marginal Revenue: MR =1,000- 20Q
Marginal Cost: MC=100 10Q
Where Q indicates the number of copies sold and P is the price in dollars. a. Find the price and quantity that maximizes the company’s profit. b. Find the price and quantity that would maximize social welfare (the competitive equilibrium). c. Calculate the deadweight loss from monopoly.
Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of $1000 the first year, how much taxable income must he report on his tax return.
Find the equilibrium price also quantity, then find elasticity of demand. Which should the federal government consider when evaluating the rising cost of college.
If a company wants its promotion to appeal to a new group of target customers in a foreign country, how can it protect against its communications being misinterpreted?
If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.
Suppose an individual’s inverse demand for fish caught by a commercial fishery is estimated to be P = 10 – 0.4Q, where P is the price of fish (per pound) and Q is the quantity of pounds demanded.
Determine if the firm's mix of inputs is optimal. Explain. If your answer to "b" is no, what should the firm do to improve its performance? Explain.
what is the expected NPV for this new machine over ten years? what is the probability of a positive NPV?
Elucidate how would you improve this survey to better reflect the needs of the consumer.
The equilibrium price and quantity of gasoline is $2.50 per gallon and equilibrium quantity is 15 million gallons. The price elasticity of demand is -0.5 and the price elasticity of supply is 1. The state legislates that a sales tax of $0.10 per gall..
What are the goals of an economic system? What is the criterion to measure the effectiveness os a system? What are monetary goals? What are the fiscal goals? How do governments influence monrtary and fiscal goals?
Suppose a firm's short-run production function is given by Q = F(L) = 10L. L stands for number of workers. If the wage rate is $15 and the firm has sunk costs of $1000 what is the firm’s total cost function? Total cost should be a function of Q.
If you invest $600 in a stock, borrowing $540 of the $600 at 10 percent interest, and the stock price rises by 25 percent, what is the return on your investment?
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